Revolution Medicines announces $1 billion in proposed stock and note offerings

Revolution Medicines Inc. announced plans to raise $1 billion through separate public offerings of common stock and convertible senior notes, according to a company statement.

The oncology company intends to offer $750 million in common stock and $250 million in convertible senior notes due 2033, subject to market conditions. Underwriters will receive options to purchase additional securities worth up to $112.5 million in common stock and $37.5 million in notes to cover over-allotments.

J.P. Morgan, TD Cowen and Guggenheim Securities will serve as book-running managers for both offerings. The completion of each offering is not contingent on the other.

The convertible notes will be senior, unsecured obligations that accrue interest payable semi-annually and mature May 1, 2033. Noteholders can convert their notes under certain circumstances, with Revolution Medicines having the option to settle conversions through cash, common stock or a combination of both.

Revolution Medicines can redeem the notes for cash starting May 6, 2030, if the common stock price exceeds 130% of the conversion price for a specified period and other conditions are met. The redemption price equals the principal amount plus accrued interest.

The company plans to use proceeds for general corporate purposes, including research and development expenses, potential commercialization costs for product candidates, administrative expenses and capital expenditures.

Revolution Medicines develops targeted therapies for patients with RAS-addicted cancers. The company's pipeline includes multiple RAS inhibitors currently in clinical development.

The offerings will be conducted under an effective shelf registration statement filed with the Securities and Exchange Commission.

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